FREE BARS WITH YOUR BREW

Starbucks' new Wi-Fi strategy 13

SERVER SIDELINE
Cisco's designs on your data center 24

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virtualization still rules 8
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 •

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VQLUME 2 3,N Q 16 September 1, 2010

Start
From t he Editor in Chief 4
Chatter 4
From theCEO 6
Numbers You Need 8
What We're Reading 10 4
Architect for
Grow
IN NOVATION s, BUSINESS VA LUE
Why Starbuck s chose to offer free Wi·Fi 13
Anywhere 28

Non-phone devices driving mobile market 14

COVER STORY Delivering-applicati on s
Applying agilebusiness techniques to IT 16 on any device requires rethinking
13 Theargument for ditching your data center 16 your enterprise a rchitecture
Cybersecurity adviser Richard Clarke on why
corporations need to defend themselves 18 BY KIM 5. NA SH

Run
• It's only amatterof t imebefore
cloud-based.corporate-grade
LEADERSHIP s, OPERATIO NAL EXC ELLENCE ERP suites run onany device,
Ke eping off -site dat a secure but accessible 21 says ADPCIO Michael Capone.
Should you farm out software maintenance? ZZ
Cisco seeksmoreof your data center budget 24
For t he right hire, look beyond the resume 26 21

Connect
PEER ADVICE
Mapping IT skills to business needs 38
Careerguidance from women IT leaders 40
Take t he long view in succession planning 42
38 ClOs should deliver, not explain. IT value 44

Finish
Index 46
Can Ed turns to anaiyttcs to
"
keep a lid on its manholes 48

.'

48

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WWW.clo.com I SEPTE MBER L 2010
 WorldMags® - Digifal Magazines

FROMTH E
EDITOR IN CHIEF
CHATTER
Microsoft Browser Battle
Triple Whammy Microsoft released I nternet Exp l orer
8 successfu lly. but faced a privacy and
Whenever Italk to CIOs these- days. I !('51their fractions to what Icall the sec u rit y dilemma. The company want ed
"mega-trend tr io" of mobi lity, cloud computing and social medi a. to protect consume rs while still being able
An' these tech nologies resha ping their business landscapes yel? Docs to access their information for advert ising
purpose s. SeniorOnline Writ er Shane
the hype come dose 10 matching realit y? Is this tre ndy trio as top of mind
O'Neill explains the debate.
as su rveys and pund its claim?
acvce.do.com/node/nass
Unive rsall y, CIOs &1Y"Yes" to all of the above.
4 W hatever the industry, the company size or the complexity of IT and Smartphone Security
business operations. CIOs a re respond!ng on all three fron ts, They're pian-
Feeling insecure about your P hone w ith
n ing and arch ireefing for a future fi ned with data -demandi ng dev ices of a 11
all t he tal k of se cu ri ty b rea ch es } Senior
kinds. from Android phones to Blackgerrys to iPads and beyond. Online Writ er Tom Kaneshioe shares Per-
"Either you're consciously building-cloud and mobile systems or you're rester's seven pre cautions to ensure
reacti ng to forces of the world pu sh ing you dow n that path:' sa ys CIa your enterprise is locked up, Among t hem:
joshua jewett of the $8 b illion Family Dollar chain of stores. "It's always e -mail encrypt ion and t he importance of
better to be conscious," pa ssw ords. www.cio.com/article/60l919
As our cover story by Senior Editor Kim S. Nash (MA rchitt'Ct for Any-
where: ' Page 28) points out. the most vital decisions being made in ma ny Social Media Swing Vote
com panies today concern enterprise architecture. The choices CIOs make President Obama showe d t he power of
now will enable their bu sinesses to swiftly ad apt to the triple whammy of socia l m edi a on the ca m pai gn trail.
demands coming from new applicat ions delivered via mobile devices, social But the election of Colombian president ial
med ia sources and cloud provide rs. candidate Juan Manuel Santos proved it can
swing vot es. By launching a social media
Our story explores how th ai re-n rchitectingof IT and business processes
campaign, he was able t o ove rco me a
is happening beh ind the scenes at companies such as PNC Financia l Services.
liZ·point d efi cit and w in t he presidency.
Matson Navigation, AD P and F:''lmily Dollar. Whi le their approaches alldi ffer, Staff Writer Krist in Burnham describes t he
the core belief they share is that a disciplined enterprise architect ure makes a keys to h is victory, f rom his Faceb ook
competitive dlfforence in a cloudy futu re w ith so ma ny moving parts. pa g e t o g am e s an d mob ile apps
Bu t how ca n you really "a rchitect for any where"? You start by gett ing www.cio.com/art icle/602214
a head of the a ngst. says Srini Cherukun. senior d irector of IT operations
at Matson. You prepare "early on from a n archi tecture standpoint" in stead DearCiOs
ofvretrofiuing something after it's been bu ilt." Apparent ly some among yo u r staff
More good advice cernes from john Ericksen. COOofIT for PNC Ftnan- question y ou r co mm u n icat io n sk ills.
r-ial, which has a grou pof3.'i·40enl<'rprisearch itl.'cts. "When you ask abo ut Ateast that's the opinion of an anonymous
mobile, eve ry body wa nts everything," he notes, but the rea l challenge is IT manager w ho t ook to our online Soapbox
find ing the time to figu re out your actu a I b usi ness needs. to declare th at "there are t imes your poli-
cies. direction and guidance ta ke a form
CIOs who leverage st ro ng enterp rise architec ture groups-and keep
that may not make sense to us minions."
them grou nded in rea l b usiness ou tcomes-will stay a step ahead of the
aovce.do.ccmznode/nzea
inevitable bu siness dema nds of an anywhere-anytime-a ny device future.
z
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Compiled by Edit orial Assist ant ~

w
l auren ero useu. Have a comment about e
w
w
an art icle in t his issue of CIO? Go t o ,
w

W
Maryfran Johnson, Editor in Chief, CIa Magazine & Events www. cio.com/issue/ 20100 901 0rwrite >
•
mfjohnson @cio.com to letters@cio.com. e
,o
"

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 CIO
.u".". TlC•• OtO~' "AD",.,.

PRES'OENT AND CEO Mi c hael Froedeobefg

GROUP PU8L1S. ER Bob M elk
PU8l1SHER E"ERITUS Ga ry J. Beach
CHIEf CONTENT Of f iCER Jcon Gal lant

EDI TORIA L
EO ITOR' N C.,Ef
Mar ytra n Johnson
E ~ E CUTI VE EOITOR
Dana Va ron
SENIOR EO, TOR
FROMTHECEO Klm S N ash
ASS' STANT " .N AGING EOITOR
Chnslone Celli

Top Line Challenge COPY EOITOR

Colleen Barry
CONTRI8 UTORS
M artha Heller. M Ict1ael Hugos. Ch"s Kanarocus.
Bravo! Over the past 18 to 24 months, CIOs from a round th e globe have Stephen Lawson , Phil SChne ldermByer
E D ' TO R I A l " ~ S I S T.&. N T
d one an a mazi ng job of optimizing. consolidating and stand ardizing IT Lauren srcosee
operations. You've nccelorated business p riorities and driven organizational
efficiency to new heights. Against the bac kdrop of the Great Recessio n. CO NTR IBU TI NG ED I TORS
CIO EXECUTIVE COUNCI L
we've seen CIOs fro m a d iverse mi x ofcompan ies (such as A lcoa, G'M and .. ANACINC OIR.. CO NTENT AND EVENTS
the New Tork r imes) ste pping up to deliver, R iCk Pastore
6 In the h istory of tilt' CIO position -s- more than two decad osc-I cannot
CONTENT OEVElOP "ENT ~P EC ' A LI S T
Diane Fra nk
think of a more challenging stretch than 2008·2009. I've been impressed
by all the CIOs who transformed their businesses and their roles within DESIG N
E ~ECUTI VE O'RECTOR. ART ANO OES'GN
the organ ization. I hope- everyone took a deep breath in the last few months.
Mar y Lester
because the ne xt wave is headed your way. ARTO'RECTOR
TerrlH31IS
The story now is about revenue growt h. What CEOs want most tod ay
is new revenue flowing to the top lim'. Of course, this won't be news to our
O N LI N E E D I T O R I A L
renders. You've soldiered through consolidation and standardization not EDITOR' Al OIRECTOR
just to cu t costs. but also to prepare your companies for the eve ntual market e"an Carlson
SENIOR NEwS EOITOR
comeback. Launanne M c laughli n
In th e past few months especially, it's been fa scinating to watch Wall ~ E NIOR ONU NE EO ITORS

Meridith tevosoo. Thomas Wa llgum

Street react to earnings reports that showed st ro ng profit n u mbe rs bu t SENIORONU NE WR ' TER~
wea k reven ue growth. Stock pr ices soared or plu m meted with the mar- Tom Kaneshlge . Sh ane O· Nelli. AI Sacco
ST"f WRITER
kef's reaction to new s on reven ues. Microsoft issued tremend ou s profit K rl st,n Burnham
numbers bu t its stock dropped over concerns about future growth. Contrast
that with the AppleofWall Street's eye. which continues to drive incred ible RES EARC H
RESEARC. " ANAGER
profits while stacking u p m assive reve nue gains.
Carolyn Jo/1nson
Mo re and more of the CEOs I talk w ith repeat this mantra: "It's all abo ut
reven ue growth!" Yet ma ny of those sa me CEOs aren't ccnvmced that the
CIOs who were great at cutting costs w ill be the r ight lenders to help fl ip the

~MEDIA
sw itch to making money aga in. We know fro m our research and in -depth
d isc ussions within the CIO Execu tive Council tha t your biggest skill-set
I N C.
challenges will show u p in three areas: customer understand ing, m arket
knowledge, and your ability to effectively commun icate. When it's lime to
rev u p the revenue. those are COT'(' competencies that CEOs expect to find in
IN TER NATIO NAl DATA GROUP
a ll their senior lenders. CHAIR...AN Or THE eo ARO
So it's time for CIOs 10prove once again how nimble their business skill Patnc kJ, M cGovern

lO G CO......U NICATIO NS , INC .

sets have become. This is you rmoment to show the organizntio n what those
hard -won strategic skills can really do for lop-line g rowth. Game on! '"
BOO Cafflgan

... " .,,,.

SPA
> Michael Friedenberg. President and CEO
•
,
eo mfriedenberg@do. com
C O N T AC T US

w""...........M.T www.cio.conv.>laff
....... leUers@cio.com
_ 508 872·0080
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 need
Cutting Back to Get Ahead
Cutting costsand deploying virtualization are top priorit iesfor CIOs
BY LAUREN BROU5ELl

Desktop PCvirtualization is the most sought-after tech-
nology among CIOs, with 4S]X']"cmt show ing in terest
accordi ng 10 th e blest CIO Technology Priorities Survey.
That's up 10 percen t from this January.
The survey,conducted in j une, questioned nearly 300 IT
loaders about the tec hnologies they plan to focus on in the
B
corning year. Nearly half indicated they wen' researching
cloud computing services and network virtualizalion.
Server virtualizntion (57 pe rcent) and mobile and w ire-
less solutions (56 percent) !OPIX'd the list oftcch in produc-
tion at a ll b usiness levels. Both have increased more th an
10 percent since the last sur vey,
Jean ine Buford, vice president of in for mation services
a nd tech nology at Keystone Human Services, says mob ile
application s are essential to her non profit com pany because
most em ployees are not office-based. "We have people work-
ing ou t in the com m unit y and need 10 record thei r work
whore they are." Laptops.she says. create a ph ysicalbarrier
between workers and clients, but smn rtphone applications
a re ideal.
Thi rt y-scven percent of respondents sa id t he y've been
looking into business-process ma nagement solutions. Rob-
ert Oyung. era of th e Superior Court of Californ ia. said
it's the ma in tech nology he 's eyeing. The cour t processes
over 360,000 cas es a yea r, most of them on paper. He's
researching scann ing technologies to convert paper files
to digital o nes that ca n be stored elec tronicaII y.
Thirt y-five percent of respon dents plan to shift invest -
me nts toward bu siness-process in novation in the next
year. but only 14 percent p lan to invest in creating revenue
growth.
"If we ca n make a 5 percent reduction in what we need
to do, the n we haw a 5 percen t su r plus to do somet hing
else," exp lains Craig Dreher, CIa at Walla Wa lla Clinic.
"[It] will drive resources that ca n be pointed toward top-
line grow th.'
Contact Editorial Assistant Lauren erouseu at Ibrousell@
rio.com. Follow her on Twitter: twitte~comllbrousell,
Research Manager Carolyn Johnsoncontributed to t his report.

Where You're Spending On the Radar

In the next year, you'll invest to improve
businessprocessesand lower costs

o
Lower business
operat ions costs

Enablebusiness - -
process innovation
Manage IT
infrastructure
of IT leaders
more efficiently
are actively
researching
--t:~=-_ Createtopline
Other
__ _ _ .J
revenue growth BPM

SEPTEMBER 1. 2010
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 0 20 10 Kronos Incorporated, All rights reserved.

Metrics Mgr

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 books, blogs and the
latest research about IT,
management and leadership

what we're
Zilch
The Power of Zero in Business
By Nancy Lublin
Lublin knows a thing or two abou t stretching a dollar. After using a
$5,000 inheritance to star t Dress for Success. a charity th at prov ides
clothes and traini ng to help women in need la nd jobs. she becam e the
CEO ofDo Some thing.org, a site connecting teens w ith volun teeroppor-
10 tunities. Now she's advising the for-pro fit world on how to get big
results on a shoes tring budget. Some tips: be generous with titles, say
thank you, and share information at every level. Portfolio, $25.95

CyberWar
The Next Threat to National Security
and What to Do About It
By Rich ard A. Clark e and Robert K. Knake
BOOK Early in this book , Clarke compares the cu r ren t
sta te o f cvberwarfare to the ea rly days of nuclea r weap-
on ry: Its enormous power is not yet u nderstood a nd its
use is not yet regulated. If that see ms fur-fetched to you.
talk 10 Estonia. In 200 7. its infras tructure was shut d own
for a week by a massive den ial of service attack. Some-
thing similar co uld happen here, Clarke argues, because
many b us inesses have become part of ou r national infra-
structu re, (To read an in terv iew with Cla rke, see "Dden·
sive Maneuvers." Page 18.) Ecco. $25.95
Employees First. Customers Second
Turning Conventional Management Upside Down
ByVln....t Nayar
BOOK W]1('11 Nnyar became CEO of IT services provide r
HCLTechnologies. it was in dangcr of' fnlling behind
the market. So he stood trad itional ideas abo ut run ning
a com pany on their heads. adopting what Fortune calls
"the world 's most modern management." First, he asked
employees what problems they saw, then began sharing
everything with them -they can check the company's
fi nancial health on its intranet c-nnd maki ng managers
more accountable to subord ina tes. Finally. he ent rusted
others.especially CIOs, with imagining and implemen ting
transformative processes. IIaroardBu.~il1ess Press, $24.95
Watchlist
Continuing Changes in the Nature
of Work, 2010-2020
By Tom Austin
RESEARCH W hat migh t your office be like in 10 yea rs?
Austin, a Gar tner fellow, predicts it will probably be more
collaborative, less formal an d much, much more vir tual.
In fact. employees may no longer have any provided
workspaces or set schedules.d oing eve ryt hing from
home and at all hours. Does your IT depa rt ment have a
plan for thai fut u re? www.gartner.co m/res ld=1331623
Wander Woman
How High-Achieving Women
Find Contentment and Direction
By Marcia R..ynolds
BOOK According to Reynolds, an orga niza tional psy-
chologl st. ther e's a type of wom an who. in her drive to
succeed. often fi nds herself u nsatisfied . As a result . she
frequently switchcs jobs in sea rch of a IW W challen ge.
Reynolds aims to help suc h women recognize their
reasons for feeling this way so they can use that insight
to their ad vantage an d fi nd work that satisfies. She also
wants those who fi nd themselves hill ing the glass ceiling
to discover ways to get more res ponsibility withou t nee-
essnrily moving up. Berrett-Koehler Publishers. $17.95
Compiled byCopy Editor ColleenBarry, To tell us what you're
reading. write to lerters@cio,com.

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innovation and business value

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13

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Free Bars With Your Brew

Starbucks providesfree Wi-Fi to keepcustomers comi ng back
BY THOMAS WAILGUM

Starbucks recently made Wi·Fi free in all its U.S. establishments, reve rsi ng a policy ofcha rging
custome rs for in -store access. But the change p rovides more than just gratis wirele ss connec tivity
Sta rting this fall. when the Stnrbucks Digital Network rolls out.customers will also have access to
free online content, news, m usk a nd videos tha nks 10partnersh ips with co mpa nies such as Yahoo,
Apple and the WallS/recl Journal. says Stephen Gillett, Starbucks' CIO and genera l manager of digital
ventures. I he group in charge of the company's {'v01ving in -stan' tech nology offerings.
Gillett has bee n retooling the "Starbucks experience" since he joined the co mpany two yea rs
ago. findi ng ways for custome rs with wireless devices 10 engage with the company in new ways.
Sta rbucks views its stores as what it calls "the third place": a wired coffeehouse that ser ves as a
bridge betwee n hOI1\l' and t he office.
A ncw one-clirk log-in aim s 10win customers who may have been tur ned offby Sta rbu r ks' ~ ~ ~

••••••
•••• . •57 % Parents who consider themselves texters. TRU Research ' " •• · 4 0 % Workers whose companies will deploy
videoconferencing within two years. GloballP50lutions •••••• • 30 % Bloggers who are located in the United States. Sysomos
,
eo

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www.cio.com I SEPTE MBER L 2010
 .. .. .. Starbucks Wi-Fi Continued from Page 13
runch- - ----.
TheProblem With Spam? More of it.
What happened to people who responded to spam
previous registration and network ing policies.
In the past. us ing Starbucks' pa id Wi-Fi cou ld Gotmorespam .. , . . . 36%
be complicated. There were several paymen t Not hing ... , .. . , . . . 30%
optio ns. including a dea l that offered two romcuteroot aveos .. , " . .. ,. . , ,21%
free hours a day to customers who used their
Spammer used e-mail account to soam others , .9 0/0
rewards cards and agreed to receive marketing
Other accounts accessed .. , , .. . , . . .5%
e-mails from provider AT&T.
Defrauded financially . , , .. 3%
Giving Customers What They Want Identity was stolen, . . , .2 %
Increasingly, con s ume rs e xpect fre e wire- Other. . ... , ... , ... , .2 %
Irs" connectivity, Forty-five percent of'Wl-Pi
SOU~(E: C1oudmorklHarri'; loter""b....An.we,...01934 u.s. adult>
US ('fS su rveyed by In-Stat last year said they

- would n't pay to use a hots po t. u p from 33

pe rcent in 2008. Most of those wi lling to p ay
• • sa id the y would do so on ly if there were no free

14
access close by. says Frank Dickson, vice president of'rescarrh
w ith In -Stat Mobile Int ernet. New Mobile
For many retailers, though, th e decision to offer free Wi-Fi
has n't been an easy once-especially if their hotspots were gen-
erating reve nue. Two years ago.
Devices Spur
St a rb ucks' com pe tito r Panora
Bread wa s offering Irce Wi-Fi in
Forty-five
percent of
Growth
its 1.200 restaura nts whi le retail- U.S. mobile operators are setting up more
ers such as Borders and Mcljon- Wi-Fiusers new data connections to iPad-like devices
ald's were not. At the time, Sian surveyed by than to traditional phones.
Schau. sen ior associate analyst at In-Stat last The bu lk of new addit ions to the mobile
service s of both AT&T and Verizon Wire -
ABI Research. predicted that free
Wi-Fi wou ld soon be seen by com-
year said they less represent "connect ed uevices," which

panics as a cost of doi ng business.

wouldn't includes non-phone con sumer products like
e-reeeers and netbecks, as well as macnme-
Borders began offering free Wi-Fi pay to use to -machine units such as meter r eaders,
last October and Mcljonald's did a hotspot. according to cnetan Sharma, found er and
so last Decembe r. president of Chetan Sharma Consulting.
The biggest worry for Gillett and his tea m might be what The se new devices helped AT&T and ven-
effect Wi-Fi squa tters-people wh o set u p in the sto re for zon drive continued growth in the second
hou rs but may not b uy much - will have on the cus tomer fl ow quarter as mobile data revenue increased 6
at Starbucks. pe rcent f rom the previous quarte r and ZZ pe r-
On his blog. Gillett answered that q uestion this wa y: "We cent f rom a year ago. For the country's mobile
ope rato rs as a whole. data services brought in
tbougbt abou t th is and worked closely with our store opera-
31 percent of revenue in the second quarter.
tions learn be fore ma king this offer; Starbucks has always been
Toget her. AT&T and Verizon accounted fo r 7S
about th e third place and constantly look ing at improving this percent of the gains in mobile data revenue in
experience. This is the right thi ng for ou r customers and ou r the quarter.
store emp loyees." The amount of mobile data used also con -
tinues to soar. according to Sharma. The aver-
Contac t Senior Online Editor Thomas Wa ilgum at twailgum@cia,com. age U.S. user consumed Z30MB per month in
Follow him on Twitter: twirrer.comlt wailgum, Read the original the quarter. up SO percent injust si x months.
storyat www.ciO.coml orticleI59688 3. he said. - Sfep hen Lo wson
o
o"
••
•••••• •••••••• · 1 0 % People who read more slowly when using a Kindle. NlelwnNorman Group · ••••••• 60 0/ 0 Business and IT -
"uo
"
•>o
leaders who don't know how much their companies spent on technology last year. Diamond Management and Technol~yConsultants
"o
••

SEPTE MBE R 1. 2010

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 GROWTH FACTOR
Try, Adapt, Win
Why agile development methodsand success with new business
ventures go toget her BV MICHAEL HUGO.

usiness flops result from th ree big mis-
takes th at companies make repeated ly, says
Rita Gunther Mr Grnth , associate p rofessor
at Columbia University Grad uate School of
Business. They accept untested assumptions
se tting up checkpo int s for reviewing deliverables before
th row ing more money into the venture.
Agile IT = Agile Business
The sim ilarity is no accident. Most business activit ies are

- abou t their new ventures as facts. they don't validate those

assumptions against changing business data. and they don't
• • adapt their plans in light of feedhack from the market.
II d oes n't ta ke long for compa nies 10turn thei r guesses
into gospel -,a 111('( (' six weeks. r.k Grath finds. In her book,
16 DisCOfXry-Drivc71GfV'/;..'lh: A Breakthrough Pmccss /0 Reduce Risk
and Seize Opportunity. she suggests processes for evalu ct-
ing a new venture's progress and for upda ting opera tions
based on what they lea rn.
Th e practices Mctjrath lays out are closel y correlated
with the way practitioners of agito development p lan and
b u ild new systems. Key clcmenrs ofboth agile IT processes
and agile business environments include agreeing on what
success looks like, defining memes to track p rogress. and
com plete ly inte rt wi n ed w ith and u tterly de penden t on
in for mat ion tech nology. The re's no meani ngful d istinc-
tion be twee n IT and business ope rations. Business agility
goes ha nd in h and wit h agi le develo pme nt techniques to
deliver the systems now vent u res require.
Constantly assessing what works and what doesn't keeps
failures chea p, Companies can afford a lot of them-and in
the process find the w inners tha t make all the experimenta-
tion worthwhile. It's the on ly way to navigate th rough- and
succeed in - a constantl y changing economy.
Michael Hugos is principal with the consultancy Center for
Sy stems Innovation.This article is adapted from his bloq, "Doing
Business in Real Time:' at advice.cio,com/ nodeI11456.

NEW MARKETS Who is doing it: Companies that can't afford multiple data centers or that
want to get into a new locationquickly can turn to a service provider to store
Access their data. Ethernet switch startup Arista Networks uses a servicefrom
Everywhere Egnyte to back up PCs and share files internally, as well as with partners and
customers. Each time Arista sets up a sales operation ina new country. its data
Cloud-based storage isavailable at the end of any broadband connection, Cloud-based storage on
deliversdata wherever US, soil can help companies get around certaincountries' censorship rules, says
analyst Andreas Antonopoulos of Nemertes Research. It mayalsosupport use
th e Internet goes of encryption technologies that are subjectto export controls.

How it works: Client software or just a passwordgives employees at new

sites access to corporate content stored in those centers.Some providers, such
as Amazon. can combine storage with computing resources-a good way togo
if Internet bandwidth is expensive in a new market and you want to use thin
clients to access servers elsewhere, Antonopoulos says.

Growth potential: IDC(asister company to Clas publisher) estimates that "ww

worldwide revenuefromcloud storage services totaled $2.7 billion in 2009. and >
>
•z
predictsit will grow to about $12 billion by 2012,
- Stephen Lawson ,"
o

,>o
""

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 Your company
probably has a
mission statement.
Turns out our
mission is to help
your company's
statement.

Credible studies have shown that 90% of all companies do not track printing costs.
Research has also shown thatcompanies spend upto 3% of theirrevenue on document
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 THETOP LINE INTERVIEW :: Richard Clarke

Defensive Maneuvers
Your companywill be a front in afuture cyberwar, sayst he
former White Housecybersecurity adviser BY KIM S . NASH

In Cyber War: The It'sa very 20th -century directors are faced with Many corporations
Next Threat to approach. black-and -white evi- in financial se rvices,
National Security and Until someone makes dence that they have lost utilities and tetecom-
What to Do About It. law or policy changes a terabyte of information munications are part

- you write about how

vulnerable America is
that say the u.S. Cyber
Command can defend
and that this has resulted
in some other company
of our critical infra-
structure. Should the
• • to electronic attack. Is Al So!T or Bank of America. beating them to market governme nt notify
it possible to create an it doesn't have the legal until they have t heir these companies, or
18 effective deterrence authority to do that. noses rubbed in it, they're any companies, when
poli cy against cyber- I think it should,The reluc tant to do anything they've bee n hacked?
war. as was done for government also has special. Theyjust say, It should be the federal
nuclear war? to explain the threat to 'The ClO will do that," and government's resconst-
That doesn'twork in corporations. The British assume the ClO is doing a bllity to tell companies
cyberspace for lots of government sent a letter goodjob. not only when they've
reasons, In the nuclear from the head of [intelli- Often, the cia really been attacked but when
era, there were more gence agency] MISto the needs board-levelcom- others have been, such
than 2,000 tests world- CEOs of the top 300 r om- mitment and CEO com- ast heir competitors, so
wide. Nationsdemon- panies in Britain telling mttment. not just of t hey realizet his sort of
strated they could do them they'd been hacked resources but to policies thing is going on.
oemaqe.rt's hard to dem o by the Chinese. necessary for protection. Google said it was
onstrate cyberweapons Most of the t ime, all ceo- being transparent about
in advance. In a nuclear What should pie want t he (10 to do is its alleged attack by the
war, you see missiles. In companies do? keep the network up and Chinese, but most other
cyberwac it's not clear Corporations need to fiq- costs down. Asa result, companiesaren't. They
who'sattacking. People ure out what their crown manyCios have been don't tell stockholders or
can pretend to be other jewels are. You can't hired for their expertise the public.
people. (See our review protect everything and in those areas, not for Part of the issue is
of Cyber War, Page 10.) defend your ent ire coroo- expertise in figuring out t hat someti mes compa-
rate network equally. It's how to make a re silient nies don't know they've
How can the fede ral not all equally important. network that resists been hacked, But tre-
government protect either. attack. quently they realize after
companies? So isit your toter- the fact. You don't know
00 more. As a matter of iectuatproperty? Your The common refrain you've lost information
law and policy, t he teo- marketing plans? Your is that attack-proof unt il a knockoff of your
eral government should research and develop- security is e xpe nsive. product or some cornoet-
actively counter indus. ment? Isolate t hem and It's not all that expen- ing products start shew-
trial espionage. provide them with special slveand it may not even ing up in the marketplace.
Most u.S. government defenses and recognize require an increase in IT
counterintelligence oper- that the other stuff will spending. We're spend - Richard Clarkeisapartner
ations are focused on escape or be stolen, ing a lot of money now inGood Harbor Consulting,
intelligence against the on cybersecurity sott- Contact Senior Editor Kim
government. not cornpa- Why don't companies ware and services that S. Nash at knash@cio, com.
nles. and most of those do this? don't work, or work only Follow her on Twitter:
are focused on spies. Until CEOs and boards of against low-level threats. t witter,coml knosh99.

SEPTEM BER 1. 2 010

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•• Are users starting to call the shots in IT? certainly,
•• tech-savvy individuals are long on opinions about the
best tools to boost their productivity.
They're flocking to mobile devices, and expect to use
their personally chosen devices for both work and
play-even incorporating social networking sites such
as raceocok, TWitter and YOuTUbe.
simply giving in to users' whims, however, could spell
trouble for IT/Security. After all, unfettered technologl-
cal choices introduce new organizational management
and security challenges-from support nightmares to
mobile maiware. IT must find a way to enable more
computing choice while effectively managing risks to
corporate infrastructure.
Industry experts say the user-choice trend is steaming
forward, ready or not. Sam curry, chief technologist for
RSA, The security Division of EMC, a leading security
provider based in Bedford, Mass., predicts: HIT's adop-
tion htecycle for user choice will go from 'no way' to 'no
problem' in 18 months." He says this trend is fueled by
tools that promise greater prooucncrty efficiency and
employee satisfaction.
USERS HAVE THEIR SAY
lOGResearch Services recently polled nearly 400
security and IT decision makers to explore degrees
of influence that users have on IT decisions, and how
prepared enterprises are for the accompanying security
and management risks,
Three-Quarters of respondents point to an increasing
trend toward user influence in IT. Decisions pertaining
to older technologies, including desktops and laptops,
are still dominated by IT. Users have much more say,
however, with newer technologies such as smart-
phones, netbooks and tablets.
Survey respondents, however, expressed concerns,
particularly about security and productivity, so they are
embracing user choice with limits. For example, 40 per-
cent never allow users to connect personal devices to
the network, while 36 percent block all or some users
from accessing social networking sites.
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MARKET
CONFIDENCE IS LACKING
Just 11percent of respondents indicate they are very
confident in their organization's security readiness when
it comes to increased use of consumer technologies.
That confidence is significantly higher among those
companies already enabling some user choice.
The lOG Research survey also identifiesareas to increase
confidence, For example, only 22 percent of companies
work successfully with users to develop a risk assess-
ment and mitigation process. Furthermore, the majority
of companies don't allocate funds from security budgets
to manage risks that come with user choice,
Interestingly, confidence is highest among respondents
whose companies allocate funds to manage risk.The
survey revealed enhanced security tools are among the
top five solutions deployed or planned for deployment
to enable user choice-including endpoint security,
data loss prevention, managed security solutions,and
advanced authentication ,
Users want choice,"TO deprive them of thatcould be
considered cruel and unusual," curry says. lOG's survey
resultsaffirm the necessityof that choice to be embraced
with knowing caution and preparednessto ultimately
realize the promise of productivity and efficiency gains.
For further resul ts and insight into t his lOG
Research Services survey, visit www.cio.com/
whitepapers/RSA and download the white paper
"Users GetTheir say." And to read complemen-
tary research on this topic from RSA'Ssecurity for
Business Innovation Council, visit www.rsa.com/
innovation.
The Security Division of EMe
CIO
 leadership and
operational excellence

Bridge to Cloud Security

HowMerit Med ical protects off-premise data while
offering users a single sign-on BV KIM S. NASH
Whe n Merit Medica l moved its Irainingand office prod uctivi ty applications to the cloud, it chose
two venrlors-cGooglo, whose Apps Premier s uite was selected for its low cost and cascof u se, and
el.cap. which hosts a training application for sa les agents. Thecompa ny then wanted end U S('f S to
be able to share content while keeping data protected, all with a si ng]", securelog-in.
21
"That's one ofthe rnajor challr-ngcs of cloud. You don', want all your software to be silo-d." says
Lincoln Cannon. directo r of Web systems at Merit. a $258 m illion company th at makes catheters
and other devices.
Some CIOs hesitate 10adopt cloud computing because ofconcer ns abou t get ling vendors 10 sup-
port internal sec urit y and compliance standards. says Robert Stroud. int ernational vice president
ofIS ACA. an IT professional group that publishes governa noe standards. ~ ~~

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o
"
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~
u
u
u
Z
<
~

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>
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www.cio.com I SE PTE MBER I. 2010
 ~ ~ ~ Cloud Security Continued from Page 21

A March survey of more than 1.700 ISACA members
revealed IT departments harbor mixed feelings about the
security and com pliance risks of clo ud computing, with
45 percent saying the risks of clou d computing outweigh
the benefits.
Like ma ny companies that decide to move key a ppl ica-
tions to the cloud. Merit uses a combination of tech nology
a nd con tracts to ensure i ts clou d compu ting providers corn-
ply with its internal security and risk-ma nagcmcnt policies.
And in order to provide desired functions -such as docu -
ment sharing or a single log-in -cbe tween vendors. it seeks
out customized security solutions.
At Mer it. Ca n non devised a pla n tha t includes s ingle
sign-on technology cus tomized for Coogle and el.eap from
Symplified. an access-con trol vendo r that specializes in
cloud comp uti ng security. Em ployees log on to Merit's net-
work once. usingoneuser name and password combination
22 tha t is managed by Symplificd's technology Then they haw
access to bo th the Coogle a nd el.eop applica tions, Cannon
says. No separate log-e ns are need ed.
Althoug h Coogle uses an authentication protoco l based
on XML,a common srand ard.el.capdoesn't support it,Can-
non says, so Symplified provides custom rode to con nect
the two.
Em ployees can nlso sha re d ata between the two systems.
For exam ple, Merit staff can create content in Coogle Docs
abou t a new stcnt or cat heter in the com pany's productline
an d then embed it in an el.cap tr ain ing quiz, Can non says.
Mea nwhile. alt hough Cannon believes the single sign-on
and other securit y Illt'aSUH'S from el.eap a nd Coogle pro -
vide sol id protection for Merit's informa tion, he wa nted a
way to show internal and ex te rnal aud itors that sec urity
policies are followed. He negotiated an agreement to have
Sym plifird monitor who accesses Merit's el.eap and Coog le
applications and when, an d regularly send log files.
That kind ofa rrangement is sm art, says ISACA:sStroud,
who is also the IT service ma nageme nt and governance
eva ngelis t at CA Tech nologies. "It's the same due dil igence
you'd do for any ou tsou rccr;" he says.
Plus. a sing le sign-on he lps insulate Meri t from potential
headaches if it ever decides to switch cloud providers. he
says. Me rit ca n redirec t its user s ign -ens to sec u red scrv-
ers at a ne w service p rovider without changing em ployee
password s or procedures. he says. "You can be up at cloud
vendor number two w ithout any user implications."
Contact Senior Editor Ki mS,Nash at knosh@cio,com.Foliow her
on Twitter: t wit t er. comlknash99.

BIG SAVINGS COME YOU HAilE YOU CAN ALWAYS Blli IIENDORS LIFE
WITH TRADE·OffS. TO BE STABLE. ac HOME AGAIN. WON'T BE HAPPY. BEYOND
Jeff Rishel. vice Rishel says CIOs Not upgrading SAP Software companies LITIGATION.
president of ITfor should consider or Oracle can mean depend on mainte- Rimin; Street's
Graham Packaging. thei r business·ssta· savings thatdwarf nante income and business cont inues
says thecompany's bility before turning the drop in support don't like seeing to grow despite
support-related to third'party main - fees, sa~ Rimini those dollars go ongoing litigation,
e.penseshave tenance. New SAP Street CEO Seth elsewhere. Oracle and it now serves23
dropped substan - customers should Ravin. But kbeing on has filed intellectual reetune sooeem-
tially since turning stick with their third ·party mainte · property lawsuits . panies, according to
to Rimini Street for vendors for now nance doesn 't mean including one Ravin. He maintains
software mainte· because they can't you've severed all aga inst Rimini Rimini has done
nance. And service guarantee that their ties to a vendor," Street. Rishel says nothing wrong and
quality has improved. ERPlandscape won't says analyst Ray the litigat ion will expects the market
Rimini, one of the change soon. Rishel Wang. a partner with only concern him if it to expand rapidly
few companies sup- said. Fore-ample, the Altimeter Group . drags on. "I'll be wor· once law suit s have
porting applications customers may In tact. companies ried if Rimini spends been settled and
fromERPgiants make acquisitions thatdecidethey more time fighting bigger players in the
SAP and Oracle, will Or realize they want want to go batk on the battles (than] system integration
keepyoursystems additional function· vendor support to on me.- He also market feel ground
humming and supply ality. Both scenarios upgrade can use wonders what would rules have been
tax updates and bug cou ld require add ing their defection to a happen if t he out· established.
fixes. But upgrades user licenses, com - third party as rever- come forced a return
still require vendor plicating the move t o age in negotiating a to vendorsupport.
support. third·party support . new deal, he says.

SEPTEMBE R 1. 2010
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 •••••••••
••••• ••••
•••• •••••
• •• vendorvisionmap •••
•• ••• •••
••••
••• •••
•••
•••
•••• •••••
••••• ••••
•••••••••

Beyond Networks Ci sco

Like itsrivals, Cisco isaimingfora larger share of Headquarters: San Jose. Calif.
your data center budget BY STEPHEN LAWSON Empt oy ees: 65,5S0
200 9 Revenue: $36.1 billion
CEO: john Chambers
THE PITCH
What Th ey Do: The company
Cisco has long advocat ed a syst ems-based ap p roach to bu ilding enter-
pioneered the network router. then
prise n etw orks, saying an en d-to-end Cisco infrastru ctu re is worth more
acquired Ethernet switch technology.
th an the sum of its parts. Last year it expanded t hat vision to encompass
24 th e w h ole d ata center. Th e company intro du ced its Unified Com p uting
to become the dominant makerof
enterprisenetworkingequipment.
System servers. along w it h storage and virtualizat ion f rom partners It hassince tackled carrier and con-
suc h as EMC an d it s su bsi diary VMware. clai ming key a dvanta ges over sumer networks and branched out
server m akers such as H P an d IBM. into areas including telepresence and
UCS was th e fi rst p latf orm t o support Fibre Cha n nel over Et hern et consumer electronics.
(FCOE). an approac h th at can cu t netw orking costs by elim inating se pa-
rate adapters, switches and cab les f or LAN s an d storage, says Jacki e
Ro ss, a Cisco v ice p re sident of marketing. Th e incumbents als o f orced
adm inistrators to manuall y cha nge t he network attrib utes o f each are recom me nded by VMware. says
server as ap p lications were m ove d aro u nd a vi rtua lized d at a center, Ch r is Smit h. Nigh tHa wk's manager
Ro ss says. UCS t o ok aim at tho se problem s. ofdata-center infrastru cture.
The com pa ny also has so me H P
and Dell rack se rvers. mostl y to run
THE CATCH more choices of compu ting plat forms, legac y ap plicat ions. and interoper-
With its UCS serve rs. Cisco Included management too ls and other data- abili ty isn't a p roblem, Smith says.
ada pters th at can s uppor t FCOE center components, he observes. About 70 percent of UCS custom ers
when users are read y for it and Intro- UCS is easier than some o the r use the servers in mixed e nviron -
d uced a co nsole administrators ca n se rver platforms to deploy bu t some ments. Cisco's Ross says,
use to rem otel y de fi ne the network. users find scaling it u p more di fficult En terpr ises that bu y in to on e su p-
sto rage and secu r ity needs of each in a he terog eneous e nv iro n me n t, plier's d ata-center lineu p- whether
ap plication. These profiles travel with Eu n ice says. '1\ lot of what you set' in or not it's Cfsco's-onny ge t s pecia l
the applications from blade to blade. UCS is de signed to work rea lly well capabilities w ithou t getting locked in.
Special chips in the servers and in wit h othe r parts ofUCS," he 5.1YS. ana lyst s 5.1Y. Also, CIOs that onl y use
Cisco network gonr help ca r ry o u t Clsro for switc hes and rou ters don 't
com mands from the console. THE SCORE 11('(>(\ to worry, Eun ice says, The gea r

T he company's fir s t blad e se rv-
ers came ou t abou t a yea r ago. Cisco
argues that being- new to servers ha s
helped it leapfrog rivals-e- H l'; IBtl-t
and Dell-on th ose managenu-n t and
net working ca pa bilit ies. Bu t lik e
any IT industry incumbents, the big
ser ver vendors benefit from decades
of de velopmen t. says Illuminata ana-
lyst jon nthan Eunice. All th ree offer
Buildi ng a data cente r a round one
ve ndor's v ision can simplify opera-
tions, whic h may hel p IT s uppo r t
rapid grow th and cha nge in a bu st-
ness. Night l lawk Rad iolog y co n-
solid ated its computing and storage
int o one data center bu ilt around 18
UCS blade servers. Unlike some other
products, UCS gave NightHawk all
the network int erfac es per blade that
should stay viable no matter whose
servers are in the d ata center.
Customer demand will forco Ctscc
and its rivals to support mixed environ-
mcnts. says analyst SI('\'('n Sch uch art
of Cur ren t Analysis."Enterprises hate
being told, 'You ca n't:" he says,
Stephen Lawson issenior US correspon -
dent with lOG News Service.

SEPTEMBER 1. 2010
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 ~ HIRING MANAGER
Going the Extra Mile
ForJoe Eckroth, CIO and SVPfor Hertz, gettingto know candidates beyond
t heir resumesproducesbetter hires BY PHIL SCHNEIDERHEYER
s CIO and SVP of global customer ra re
for He rtz Global Hold ings. Joe Eckrot h is
responsible for leading the customer ea rl'
an d l'I'de partmcntsofa multibillion-dolla r
26 ear- and equipment-ren ta l compa ny, Il l'
shares his best hiring practices and wh y it's im po rtant to
set to know cand idates beyond their resu mes .
What hiring lessons are you applying today?
I use vidroconferencing 11I0l"e in place of telephone inter-
views. It has bocomoa valuable toolin mov-
ing the interview process forward wh ile If you don't know
enabling me to assess till' leadership style
and chemistry of those candidates I can' ,
what makes a
nice! face 10 face. I have staff in Oklahoma.
candidate tick,
New jersey and Dublin, and for the pos i- you'll make a
tion s that I h ire, it ca n be difficult to fi nd hiring mistake.
the right talen t locally. vidcoconfercncing
enables u s to have a preliminary conversation before hav ing
a candidate invest time in traveling. I can also include more
interviewers in mu ltiple locations at the same time.
When candidates do come in, is your focus on
assessmg them or on setung the opportunity?
The fi rst on-site visit is where you' re going to win or lose
the hea rt and m ind of a cand idate. When I b ring someone
in, I have h igh hopes they' lljoin the company and am more
con cerned about the-ir im pressions of it and our tea m. I
wa nt candidates to have a level of rom for t when they arrive
and strive to instill the f(,l'ling that we view them as a h igh -
q uality cand ida te. I don't w ant it to just be a linea r walk
from the lobby to the ir in te-rv iew. Instead I wa nt to show
aspects ofthe company so they can get the bigger picture of
what we do and how they would fi t in. This is as import a nt
as till' onboarding process once they are hired .
How do you prepare for this in advance?
One of my goals is to sell a cand id ate on the community they
willbe joining. We have to do our homework. as the resu me
may not give [background ] inform ation. For exa mple, we
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want to know if they are singleor ma rried w ith school-age
children . This way we can tie in attributes we offer th at
shou ld be attr active to them , given their lifes tyle.
How do you decide who interviews candidates?
I tr y to be ns inclusive as possible.Hlr's a role wh ere they're
going to have exposure to a parficular segr ncnt ofthe b usi-
ness. I get tha t un it involved in the in terv iew process. It
seems to energize candidates a nd (suggests) there is good
alignme nt between IT and vario us segments of the com-
panyHigh-qualitycandidatcs loo k for this.
O n the IT side, I incl ude as ma ny people
as I can wit ho ut going overboard . Ca ndi-
da tes shouldn't be put through ten d iffer -
ent inter views. I want to get enough data
to assess competencies and cultural fit and
then, if possible, get consensus.
What's your post-interview process?
I like speed at the decision point. As a candidate. I ha ted
the deafen ing silence th at often occurred . Most candi-
da tes feel good when they leave a n interview and, if we
f{'el good, the worst thing that ca n ha pp en is for weeks to
go by without an y com mun ication from us. Co mmuni -
catio n must occur. even if the information is incomplete.
What's your tactical focus durinB the interview?
My ma in int erest is in developing a solid con nection wi th
the candid ate. I r an aSSl'SS more from a pos itive affinit y
w ith them th an from what is on the ir resume. If l connect
w ith th em. the re's a good chance the team w ill too. I do like
to focus on leade rsh ip potent ia l and on w hat ma kes the
cand idate tick. A re they mot ivated by money? By work ing
on lend ing-edge terhno logy? Or is it the ability to ch ange
roles cverv 18 month s? If you d on' t k now w hat ma kes a
candidate tick, you will make a hiring mista ke.
Phil Schneicerrneye r is a partner in the Stamford, Conn, office of
Heidrick and Struggles. Hespecializes in the recruitment of nos
and the ir direct reportsacross all industry sectors,
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 WorldMags® - Digifal Magazines
COVER STORY :: Application Development
.- ....
"II"
... . .. . .. ...... . .. .
.I. ...... ... . ..... \ . .......... ..
A --_.-
Delivering applications on
any device calls for rethinking
your enterprise architecture
B Y KIM S. NA S H
Look at where technology is going,
or where- it's d ragging us. and yo u sec two
un stoppable £0]",('5 that. i f mismanaged.
w ill send prob lems rippling through corpo-
rate IT infrastructure for years: Cloud and
mobi le com puti ng.
Jos hua jewell. CIO of the nearly $8 bil-
lion Fa mily Dolla r Stores chain. SCI'S what's
at slake, Ill.' is investigating cloud services
for possible use in a pplication developmen t
and testing.Meanwhile. the mobile pressure
bu ild s. Jewe tt says employees check wor k
e-mail on personal devices they b ring: to the
officeand mos t customers of Family Dollar's
7.0 0 0 stOH'S carry ('('11 phones.
"Either you're consciously bui lding cloud
and mobilesystemsor you're reacting to foTTI'S
of the world push ing you down that path:' he
says."It's always better to be conscious:'
jewett jokes. b u t his po int is th is : You
need to m ake carefu l r-ntrr prise ar r hitcc-
ture decisions that encompass tech nology
and services that. whethe r or not they live
inside the corporate wa lls , will incorporate
themselves into your bus iness strategy
Gartner pred icts tha t wit hin two years.
SEPTEM BER 1. 2 010
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.. . ...
.
up to 20 percent of companies w ill own no
IT assets at aIL their CIOs having hired out-
sourccrs, cloud providers and soft ware-as-a-
service hosts to do the ir comp uting work for
them. Many other CIOs will be responsible
for a m ishm ash of internal and externalI'T
resources that employees and customers u sc
with a plethora ofdevices. While iPhone users
can't yet p inch and flick their way through
tra nsactions on a corporate-grade ERP suite
running in the cloud, give App le and SAP
lime, says Michael Capone. CIa ofAutomatic
Data Processing. the $8.8 billion payroll ser-
vices firm. That's where we're headed.
No k mgr-r can we pick a hardware platform
and expect to live with it exclusively, or even
for wry long. IT leaders m ust conceive a tech-
nology architecture flexibleenough to deliver
enterprise npplica tions-c-sctuctirncseven the
same single application-s in several wa ys, says
Filippo Passc rini. CIO of Procter & Gamble.
That includes running apps in others' data
centers and in the p alms of peoples hands,
Clos. the refore, must work closely w ith
enterprise architects to lay down a fra mework
for delivering npplica- ((ontinueson Page 32J
 ._-, r--

, --'C .

Whether a mobile application is built

in-house or by an outside firm depends
on the decisions architects make
when design ing capabilities, says
Michael Capone, CIO with ADP.

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 ADV ERTISEM ENT
•• Cloud-based service delivery seems to be a new way
•• of life in IT. No longer a one-off solution to a one-off
challenge, it's become an enterprise strategy-and a
successful one at that.
"It's a way for companies to focus on their core
business, offloading ITmanagement to trusted third
parties," says Joe Staples, chief marketing officer at
Interactive Intelligence me, an Indianapolis-based pro-
vider of business communications software and services.
lOG Research Services, in conjunction with CIO magazine,
recently set out to uncover the extent to which the cloud
ispermeating business, tapping the opinions ofapproxi-
mately 150 technology and business leaders. The poll
shows that 81 percent ofthe responding companies are
indeed using or planning to use cloud-based applications.
Early adopters say they are reaping the rewards, from im-
proved deployment times and reduced IT management
burden to reduced investment costs. And that value is
spurring the migration of other key business functions
to the cloud. One prime candidate is business com-
munications. which 54 percent of respondents say is a
good fit for the cloud, citing applications like inbound and
outbound contact center automation, IP PBX functional -
ity, interactive voice response and more.
Extending the value
The lOG study reveals that respondents see value in mov-
ing communications off-prenuses. "Cloud-based com-
munications isa solution laced with benefits:' Staples
claims, Nmaking for a very compelling business case."
Many respondents cite reduced IT staffing requirements
(57 percent) and faster deployment (47 percent) as top
benefits, enabling them to offload the burden of buying
hardware, building infrastructure, and monitoring equip-
ment. Similarly, respondents toutsavings opportunl-
ties such as little to no up-front capital expenses (56
percent) and the add-as-you-grow purchasing model (50
percent)-hard dollar savings that can be putto better
use. And some respondents point to quicker access to
features (40 percent), which allows them to introduce
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functionality on an on-going basis instead ofwaiting for
major system upgrades,
All said, 59 percent of respondents expect cloud-based
business communications applications to yield quicker
ROI than on-premises solutions,nThe hard dollar savings
are impressive; Staples says. "aut the soft returns make
the cloud-based argument even more compelling."
Breaking Down Barriers
Most respondents claim that their interest in cloud com-
munications has either increased or remained the same
in the past year (80 percent),Staples considers this a
sign ofthe times in that the technology hurdles that once
deterred adoption-perceived lack of security, concerns
about application reliability, and lack of control over
applications-llave largely been addressed by experi-
enced vendors.
NOW, CIOs are shopping cautiously for solutions, with
those issues dominating top selection criteria. But they're
also looking for an established software company to
provide the solution, rather than a new company whose
primary business is "the ctouc.vrhe established vendors
offer a proven track record, core competency in the ap-
plication, an established customer base and avariety of
deployment options-meaning a seasoned product that
just happens to now be available in a cloud format.
So, as ClOS apply what they've learned by taking applica-
tions like messaging and CRM to the cloud, business
communications will no doubt earn itsstripes,And
everyone-from IT to executive management---can see
the value in that.
Go to www.cio.comtwhitepapers/ININ_cloud to
obtain a free download of "Business Communications:
The Next Wave in Cloud-Based Computing?" and the
complete research results.
IN HMACTIH lN TElLl (;[N CE
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COMMUNICATE IN SO MANY INTELLIGENT WAYS
What happens in Vegas often beg ins with a call, fax,
Are you intelligent yet?
email, webchatorsocial med ia lin k to VEGAS.com .
This high-powered contact center joins mor e than 3500 "Mony of our customers ore using social media and
other organizations that depend on Interactive web chat for conversations in addition to traditional
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voice, fax and email channels. Interactive Intelligence
their business. The single platform multichannel
provides access from today's most popular
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communication media with more efficiency and
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customers with an efficiency requi ring less ogents.
We now handle 10 times the interactions with
An innovative commu nity of contact centers and two-thirds the steff."
enterprises relies on Interactive Intellig ence to improve
interactions wit h their customers. Visit us ot - Rob Cote ,
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 COVER STORY :: Application Development lContinued from Page 28]
lions on muItiplc pintforms, Sollie view enterp rise archi tecrure as
a theoretical exercise or a noble endeavor to try when there's time.
Buttoday's technology shifts ma ke good en terprise architecture
a practical necessity Noone can be certain how mobile and cloud
technology will develop or wh ich vendors will domi na te.
Get ahead of the angst says Srini Cheru kuri, se nior director
oflT operations at Matson Navigat ion. "That's the key: starting
ea rly on from an arch itecture sta nd point as opposed to ret refit-
ting snmcthing after it's 1>I.'('n buill."
Cloudy With a Likelihood of Mobile
I'll phone vendors are on track to sell 1.4 billion
devices th is year. after selling more tha n 2.4 bil-
lion in 2008 a nd 2009, accordi ng to Gartner.
With in four ye a rs, predicts Morgan Stanley
invest ment gur u Ma ry Meeker, more people wi ll
get on the Internet via mobile devices than PCs. And th at' s not
just consume rs . At P&G. for instance. mob ile compu ting is no
longer just for road war riors; it's a p latform for the enterprise.
More than 12,0 0 0 P&G employees use Ap ple iPads and vnri -
nus smartphonos for everyday work at the office, prom pting
the ccm pnny to work w ith Xerox to develop technology to let
these worke rs p rint docu ments from th e devices.
The Pew Research Cen ter. meanwhile, recently asked 895
Inter ne t experts a nd technology ind us try execu tives for views
on how computing will evolve. The big prediction: By 2020,
mos t people wi ll access software and information onltne-.
mea n ing somewhere on the Intern et. rather tha n using tools
and d ata sto red on their PCs or in a company data center,
Today. CIOs see a clear line between on- premise and cloud
computing, be tween the safetr and confidence of controlling
one's systems and the anxiety that comes wit h working in the
cloud. But in 10 years, the Pl' W report concludes, there w ill
be no line. "People will generally not be able to disti ngu ish
IT leaders must u oer an
how busi ess pn~cesses
relate, wi'i mobile,' very-
body wants everythir1Q,
The challenge Ihave':':
[determining] what busi
ness need you are solving:'
- JOHN ERIC KSEN, COOAND LEADER OF
TECHNOLOGY AND CORPORATESERVICES,
PNC FINANCIAL SERVICES GROUP
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the difference be tween when they are work ing within their
local device and when they arc access ing the cloud." Pew S.1YS.
Sec uri ty and accountability issues tha t vex CIOs today w ill
be resolved.
Between now and then. a d isciplined enterprise architecture
can h elp CIOs manage the ambig uit y th at cloud and mobile
bring. says Leon Ka ppelm an , a professor of in form ation sys-
tcms at the Un iversity of North Texas and Iounding chair orthe
Society for Infor mation Manage ment's enterprise architect ure
group. Crcating a n enterprise a rch trectu rc means not only lay-
ing out which technologies a company will use b u t also the
rela tionships and intersections between the business p rocesses
they support.
But most companies do only ha lf the jo b, Ka ppelman S.1YS.
Often, they stop at the tech nology m ap because it is simpler to
figure out th an how business processes relate to each ot he r.
Serv ice-orien ted architect ure (SOA) gets at some-ofthese chal-
lenges. Kappelman says. but doesn't provide a complete solu-
tion -at least not thc way most people practice it. SOA addresses
the design and im plementation p ha se of projects, wit h the goa l
of later reusing ind ividua l components, Many SOA ad opters
ma p a discrete business task. such as record ing customer contact
infor mation. to specihc technology.such as a web form. But SOA
usua lly isn't u sed to understa nd and record an ent ire process.
such as end-to-end cus tome r service. he says.
Especially when u rgen t projects arise, pausing to consider
the larger context can feel as if it slows progress, says John
Ericksen, chi d operating officer a nd leader of technology and
corporate services at PNC Financial Servires Oroup. But in this
time of technology flux. as cloud and mobile compu ting flower
into enterprise- ready technologies, IT leaders must understand
how business processes rela te. Ericksen sa ys. "When you ask
about mobile, everybody wa nts everyth ing. But the rea l chnl-
lengc I h aw is [deter mini ng] what business need you are solv-
ing." He advi ses: "Tnke time to figu re thi s out."
Otherwise. Kappelman adds. you will design syste ms
wed ded to particular technologies that contribute little
tomaki ng the com pa ny ns a whole more efficient. "Even
if we perfect the technology art-hitccture and engineer
our systems into reusable. inte roperable. and therefore
flexible components. we canno t stay aligned un less we
can also maintain our knowledge of the business and its
processes, objectives, ru les and tim ing."
That, Ericksen says, is what PNC is st riving to do,
A Business-Focused Blueprint
NC, a $ 16.2 bill ion consumer- banking
company, employs 3S to 40 enterprise
a rc hitects. Some arc tec h nology-
focused -planning, for instance, opti-
m a l server configu rations. Others
wo rk w ithi n com pany u n its to understand business
requirements. As a whole. the en terprise architecture
group aims to u nde rstand PNC's bu siness goa ls, such
as acqu iring new kinds of customers or expa nd ing in
a give n geogra phy.
There's also a group that resea rches Jl('W tech nu l-
 ogy concepts to iden tify ways they may fi t into PNC's future,
Ericksen says.This stretch-thinking team helps guide adop tion
of strategic techno logy he says,by determi ning where- and how
new technologies, such as mobile and cloud compu ting. can
work at PNC.
For example. PNC bought the bank National City in 20 0 8
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for $5 billion, PNC's en terprise architects arc us ing the inte-
gration project to bring private cloud and virtualized systems
to the three data centers being consolidated and re-equip ped.
The bank wouldn't have been able to do tha t if the architecture
group hadn't already explored the technologies by, forexam ple,
runni ng test cast'S in mock setups of virtualized servers.
www.cio.com I SEPTEMBER 1. 2010
 COVER STORY :: Application Develnpment

~\Ve've taken a step forward to crea te a nimble oper-

ating env ironmen t that a llows us a 101of choices," he
says. Tilt' newly re-archltected "intelligent data ccn- I
ters." as he r alls th em, will hou se priva te douds w ith
se rver capacity able to scale u p or down in respo nse
to demand levels from the use rs ofPNC's app lications.
That wasn't possible with PN C's a nd National City's
Enterprise Infiuencers
legacy sys tems, he says. IT professionalsneed strong
In the mobile realm. PNC tailors mobile access tohank
3('('1)\1Illsto various r ustomer SI.gnwnts tha t. accord i ng 10 businessandtechnical skills to build
the compa ny's research . tend to prefer different devices. aframeworkfor applicat iondelivery
College kid s skew 10 the iPhone while Baby Boomers.
who are often using phones issued by their employers.
(105 need enterprise architects to define a t echnology
and business framework for delivering applications on a w ide
are more likely tocarry Blackgerrys,
range of devices. But finding t he right IT professionals can be
To acco mmodate these d lffero n t p latfo r ms, PNC
difficult, they say, due to the diverse set of personality t rait s
decided to develo p a code base fo r generalmobile
and professional skills needed,
acce ss and. w here needed , to c us to mi ze th e use r
"It's a unique personality-negotiation skillsas well as
int erface for each k ind of device. Event ually, PN C w ill
technical skills:' says John Eric ksen, chief operating officer and
move more toward slimmed-down web application s
leader of technologyand corpora te services wit h PNC Financial
acc essible by mobile Int ernet devices. The idea is to
Services Group,''They're hard to fi nd,"
avoid as much a s possible building entire applications
Matson Navigation established an enterprise architecture
specific to each platfo rm, says Erick sen, Tha t sa w s
group in 2004,One of its biggest contributions to date has been
development time and avo ids ge nera ting isla nds of
to spread respect for the company's architecture and applica-
code to mai ntain.
t ions standardsto applicationdevelopers andquality testers,
Ideall y, he says, arch itect s are visionary, but wit h a
says Srini Cherukuri. senior director of IT operations.
practical bent. (See "Wanted . En terp rise Influcnccrs. ~
Wit h that understanding, the company moved away from
this page.] "l t does n' t ma ke se nse to say, 'I want a vaca-
building isolated systems that perform specific jobsand toward
tion house on Ma rs: if yo u haw no due how to ge t
sharingand reusing piecesof applications andbusiness processes
the re." he says.
to make IT a more coherent whole, Cherukuri says. That ability to
persuadeothersto change iscritical, he adds.Thebestarchitects
Architecture Activism
also understand what kind of data brings the mostvalueto the
r a n spo r ta tio n se rv ices co m pa ny Ma t-
company and then influence the design and integration of sys-
son Nav igat ion is adj u sti ng its en ter-
temsto produce that datafaster, in different combinations and
pr ise a rch!rccturc to incorporate mobile
for different constituencies.
co m pu ting. For sever al yea rs , Matso n
You need people who understand business and custo mer
has used protect ed websites to p rovide
needs, Ericksenadds. They alsoshould have broad knowledge
transportation and logi stics sc hed u les to its customers.
of technology capabilities, though not necessarily code and
s uch a s ma nu fact urers and big retailers.
query languages. he says,
Now Matson lets cu stomers use mob ile dev ices to
Companiesusually look for IT professionalswith 10 to I S
access th at d ata, wh ich is collected from q ueries wr it-
years of experience in order to fi nd that combination of
te n b y th e IT gro up agains t existing syste ms. Cu s-
characteristics. Some companies even want their architects
tomers ca n a lso set up text alerts to be notifi ed when
to have a master's or doctorate degree in computer science
particular conta iners move.
or engineering. - KS N,
Not forcing cust om ers to u se a laptop or desktop
machine to S ( '{' wh at's happening with their goods lets
the m make decisions faster, Clw r uku r i says, ~\Ve are
a segmen t in their supply chai n." he says. "For us to
be able to provide that information to our cu stome rs Mobile wasn't much of a factor in enter pr ise co m pu ting then.
is of high co mpetitive value.~ Even if it had been. Chc rukuri notes, mobile tech nol ogy h as
Like its custom ers. Matson's employees want mobile access to advanced so m uch in th e past fi ve years tha t any blueprints
such critical applications as vessel sched uling, 11(' sa ys, But before would 1)('obsolete. So now Matson is redesi gning the u se r int er-
the IT group provides such access. Ch eru kuri is having the archi- fan ' layer of the vessel sc hed uling a pplication to work well on
tecture tea m resea rch features and sketch out how mobile wi11 the smal l screens of srnnrt phones. If the IT group simply ere-
work internally. He wants to do less retrofitting of existing npplica - ated sma ll,static cha rts of vessel schedules so that mobile users
tions and instead deliver re-archltccrcd versions. could get immediate access to such data, they'd soon be dissatis-
Matson's original enterprise architec tu re. laid ou t in 2004, fied, Ch er u ku ri pred icts. ~We wa nt to h ave high user satisfac-
didn't accou nt for general m obile access to COrIXJI<\tc systems. tion , which you won' t ge t if you retrofit rather than arch itect

SEPTEMBER 1. 2010
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 COVER STORY :: Application Development
it properly for pe rforma nce," he says. "We want to get it
right" He expec ts 10release a mobile version of the vessel
scheduling application this year.
Custo mers should get data anywhere they want. says
ADP's Capone. a ph ilosophy the company's enterprise
architecture tries to reflect. For exnrnple. the architecture
gro upal the company has, like PNC, defi ned several basic
mobile ap plications. ADP's a re for such tasks as viewing
aggregated data abou t fiR or payroll transactions. The
architects studied w h ich d ata was bei ng accesse d most
frequent ly at A DP's sec ure customer wcbstres and UsM
that in for ma tion to design the ca pabilit ies th ey sho uld
provide in new mobile applications. Decisions about who
builds an ap plicat ion flows fro m choices the arch ftcctu rc
group makes. For exa m ple, ADP had its own develo pers
build the basic function alit y ofits mobi le applications bu t
hi red specialized fi r ms to tai lor the interface to differen t
mob ile operating systems. Its platform now su pporls the
Black gerry and ij'honc. and the com pany will likely add
s upport for Droid devices, Capone says.
~We'll controlthe fu nctionality and u ser expe rience," he says.
"But the nuances of what it takes to work on a Black Berry versus
Iphone ate best left 10 the expe rts.~
At Family Dollar.jewett and his team designed nn enterprise
architect ure that reflects the com pany's low tolerance for ris k.
In choos ing technologies, for example. he favors a Noa h's Ark
approach : two technology options for every key system. That
way, the company doesn't get locked in. Databases come from
Oracle and Microsoft, for example. Servers and desktops run
Linu x and W indows operating sys tems. Developers u se java
and Microsoft program ming tools. Pl us.jewett says. "you can' t
be a purist and get anyt h ing do ne."
More generally, theen terprise nrchltecrurc demands more buy-
ing than buildingofsystems. jewett believes IT is only as good as
the business value it b rings. so he wan ts the flexibility to stop using
a system if it doesn't pay offfast enough or fails 10 achieve business
goa ls. Therefore, he prefers deploying &1aS sol ut ions.
When you bu ild your ow n software, you have to pay for the
hardware, development. deployment and support. "You're risk-
ing capital a nd hopi ng you get bustness va luc,~ he ex plains. "If
you've written a check. you're going 10 ride tha t deprecia tion for
a long time. whether you're getting business value or not."
But with SaaS and, he p red icts, when Fam ily Dolla r starts
using cloud computing, the risk to precious investment dollars
can be 100\'('r. Provided you r agreements w ith vendors are struc-
tured prope rly.jewett says, "you ca n walk away if you're not get -
ting business value."
Applications Everywhere
well-developed enterprise archtrcct u rc reflects
th e integration, or lack thereof between IT and
business goals. says Betsy Burton. an analyst at
Gart ner. The arch itec ts can become a conduit
be tween the tech nology group and business
ma nager s, she says. In so doing, a good arch itecture team will
transcend a techno logy'focused mission, she says.
"You wa nt the team to evolve the busi ness to the future,
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When elr'ilerin~ CI n
mobile devices, 'we want to
hav high user satisfaction,
w ch you won't get ifyou
refrotit ratherthan architect
it properly for performance."
- SRINI CHERUKURI.
SENIOR OIRECTOR OF IT OPERATIONS,
MATSON NAVIGATION
wh ich is more than setting down vendor st andards," she says.
"Organ izations that do not d rive a ll architectural dec is ions offof
a clear understanding of b u siness context and the future sla te
of the compa ny have an extremely difficult time demonstrating
and del ivering business value."
Smooth delivery of applications in new modes such as cloud
and mo bile serves as a proof point ofthr valur-ofgood enterprise
architect ure. says Matson's Chcruku ri . "Enterprise arcbncc-
tu res define technology and wha t the business does and how it
does it," he says. "They also define our thought process about
technology."
Burton agrees. Today. 60 percent to 70 percent ofenterpr ise
architectu re chiefs report to the CIO. But she predicts that as
arch it('(1 u H' b'TO u ps t'VO1V(' to em phasize busincss-process exper-
tise, they will become accou ntab le to the chief operating officer.
Kap pelman. the IT professor. expects a greate r evolution.
The big thoughts abou t the creative u se of technology in a bu si-
ness context won't stay con fi ned to IT or enterprise arch itectu re,
he says. He likens the change to the way "scient ific manage-
mon t" emerged in the late 1800s. Then. efficiency experts were
charged w ith making shop floors r u n be tter. Soon, prece pts
deve loped by those scientists proliferated . influencing the work
habi ts of all employees. Kappelma n says. Everyone strove for
efficiency, Likewise, he predicts, "wha t we now call en terprise
architecture will become pari of how everyo ne funct ions."
Meanwhile. CIOs call leverage a strong enterprise nrchitcc-
ru re grou p to keep a head of business demands by identifying
ap plica tion delivery needs. Er ick sen em bedded arch itects in
eac h line of'busln ess. such as asset management. to absorb the
nuances of sh ifting strategies and goals. These architects bring
what they know of technology and wh at they learn about the
business back to the developmen t team to ensure a pplications
ate built and delivered in ways that best serve PNC as a w hole,
The en terprise archi tect ure team. he says. "has to be very
rooted in bu siness ou tcomes.' I:3IiJ
Contact Senior Editor Kim S,Nash at knash@cio.com.
Follow her on Twitter: twitter.comlknash99,
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peer advice from t hecio executive council

38

SOUNDING BOARD

Match Point
[ las mapIT skillsto business needs and counter old perceptions
to foster hig herexpectations from stakeholders
FRANK CERVONE . PURDUE UNIVERSITY CALUMET
BALAN CEDIFFERI NG REALITIES Frank Cervone.
Vice Chancellor for
The challenge I encountered when I star ted at the u niversity wnsn'tthnt !Thad don e'
15 &. CIO. Purdue
anything wrong, hut that there hadn't txx -n enough cnrnmuniration about what ITcould University Calumet
do. No one expec ted us to have an active roll' in deciding how to p rovid e services.
I fir st had to establish myself within the broad network of universit y leaders-at
every level, not just the lop- an d do so fai rly quickly. While I needed to understand
their need s. it was almost more importan llo address their perception of the IT orga- Ian Patterson,
n ization. No grou p is a monolith; det ermin ing the differing levels of con fi de nce and CIO, Scottrace
interest a110w('<I me to create an effective strategy to mise the perception in some groups.
cha nge it entirely in others. and create balance and trust acr oss the un iversity. O nly
once that wa s in place could I IX' the execu tive who design ed. an d now leads. a ~ ~ ~
Ron Bianchi. CIO,
Economic Research
The 00 Executive Council isa global peer advisory service and professional association
Service. USDA
of more than 500 ODs, founded by C/O's publisher. To learn more. visit wundl.cio,com.

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 .. .. .. Expectations Continued from Page 38

cross-func tio na l governance structure forma lizing how everyone involved

Succeeding as
with tech nology-en ab led projects across ca mpus works toget her to meet ou r aWomaninlT
mission needs. Positioning yourse lf and your group as that strategic pres-
Who: Female tech executives
('nIX' is a job that 11('\'('( ends. bu t cou ntering th ose perceptions and provid ing
around the world
a new mcc-h anism for delivering better service has had a vis ible impact on
how people th ink of IT. What: Top professional
and personal advice for
IAN PATTERSON. SCOT TRADE women inall stages of
FACILITATE JOINT VALUE the irIT careers
As a top executive at Srottrade, I don't ex pect to simply haw a S('UI at the Why: Women have a
table. it's all about wh ich seat I have on any given day. unique perspective on
Technology is at th e heart of wh at we do as a n onl ine brokerage, so the the obstacles to becoming
expectation is tha t IT is going 10 be there providi ng a lendersh lp role. How - top executives inthe male-dominated
business IT profession. Represent ing just
ever; I had to work w ith my peers to establish how they wou ld see that h ap '
24 percent of u.s. technology employees
pen in ever yd ay apptlca tionI pu t it to them th is way: They h ave the dep th
in2009. women find themselves sur -
and I have the breadt h. They a nd thei r teams are the experts in thei r fun c-
40 tional area. but we have come to know enough about each function to put
rounded bymale bosses. direct reports
and colleagues, It ooev rt get any better
the pieces together for grea ter benefi t. and I se t myself up as the con nector as they reach the upper ren o -women
a nd facilitator. By being able to sit w ith the market ing seal. the fina ncial seat. represent only 10 percent of heads of
or any other, I have become the cxcc uuvc who ca n b r ing the right people IT, according to crOs 2010 State of the
toge ther to provide greater benefit to the co m pany and ou r clients than the ( 10 survey, As one female(10 put it. "irs
fu nctions co uld on their-own. a shame women are opting out of this
Crea ting this role - a nd se tt ing the expecta tion th at you w ill fill it - profession. [Theyappea r to be doingso
requires a dedica tion to learning. I like to say to eac h of my peers, "Help me because] it 'costs' a rot.i.ttme. commit·
ment and personal sacrifice, We cent do
u nd erstand : ' and I also foster that approach in my staff. By a lways com ing
everything, but failure is not allowed."
back to lea rn abo ut the cha nging needs and new strengths ofour bu siness
fu nctions, I and my team are now expected to be facilitators of va lue rather How; At the request of the (10 Execu-
tha n enablers of p rocess. tive Council, female senior IT leaders
coaatoreteo to document t heirmost
RON BIANCHI. ECONOMIC RESEARCH SERVICE important advice for women movi ng up
RELY ON EXISTING EXPERTISE the IT ladder. Behindeach broad pieceof
advice-such as ident ifying the im pact
Even as a relatively sma ll research agency with in the U.S. fed eral go vern- of your personeuite on your IT career at
men t, we a re h and ling several h u nd red terabyt es of d ata in -ho use. and I each stage-are personal stories from
have spent a sign ifican t amou nt o f time en hancing others' u nderstanding women who have become strong IT lead-
of how IT ca n help get th e most ou t of it. An im portant piece of the puzzle is ers and better business executives. One
the ex pansion of the role that ou r dat a coo rd inators pla y. isAnnabelle Bexiga. Cia at TIAA-CREF.
These are people who rome from with in the program groups. and are who noted. "I've seen women come in
eco nomists themselves w ith a strong interest in IT. Many of my people are who are driven and are immediately
virt ually embedded w ithin the research groups, b u t in my time here we've loo king for t heir next job. but you need
to have a solid foundat ion of skills," Twila
brought the d ata coo rdina tors for wa rd to expand their role as liaisons. My
Day, senior VP and Cia of Sysco, also
steffmeets w ith the m monthly and relies on them and th e other economists
shared some techn iques that help her
to infor m u s of our researchers' needs. On the other side, they also help me
gain a stronger voice at the executive
ma nage expectations of what IT can provide. tab leand showcase confidence. At the
To build on that, I believe that creating communities of p ractice is a critical top of her list for those new to the big
o
part ofselling ex pec tations throughou t the user ba se. I and my sta ffhavecre- discussions: Don'tsit at the end of the "o
<
atcd a Statist ica l CommunityofPrarticc. governed from w ithin the Offccof tab leor inthe corner: instead. place ••u
Ma nagemen t and Budge t. to bctrcr coord tnnrc policies a nd processes among yourselfsquarely inthe middle of the o
meet ing room, ,"
statisticia ns and their IT sta ffs, who can hel p improve those processes. Pee- >
•z
ple from both sid es are volu nteering thei r expertise, and agencie s will be able
to rely on the idea s and ac tions from thi s grou p ofexper ts, raising the bar for
g·l't.....
r
To download the tool. go to
,"
o

how all federal researchers u ndersta nd th e va lue IT ca n help them realize. l"t countil.tio.com/dI0910 . ,"o
u
u

SEPTEMBER 1.
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en or

Planning
Your Legacy
How Toyot aMotor America
ClO Barbra Cooper develops
leadersprepared for t he
42 next 20 years

What should CIOs be doing to improve succession planning?

There isa big differ- It ta kesthree to five or government entities Initiatives such as the
ence bet ween submit- years from t he time th rough t hese issues Council's Journey to the
ting names to the HR you start t o impose while understa nding Future-State cia and
succession plan and the exposure, train - t he complexities they Pathways development
practic ing deliberate ing and techniques inherited from the programs are helping
end-to -end leadership before you begin to get decisions of the past - with this.
development When ret urns. And if you are those we are making It's not instinctive to
ClOs create a develop- not t hinking about th e t oday and have made spend personal or ron-
ment plan for their competitive business t hroughout th e era of sctous effort to find and
high-potentialsand demandsthat will dom- distributed computing. groom people we really
give it their personal inate in the next 20 These new, exter - believe can replace us.
attention, t hey are years, you can't prepare nally focused demands You have to think about
more likely to endup people for t hem, will bring an end t o th e your mortality, and you
with highly qualifi ed Forexample, sus- traditional model of are not really rewarded
talent that the execu- ta inability and govern- successful ClOs, w hich by the business. But
tive office views as ment policy compliance was primarily about for me, 10 years from
ready and confident will be much more service provisioning now, I hope the IT
enough to succeed complex, challenging and being aligned. If we leaders here will say,
t hem, and global in scope over don't develop people "You know, I remember
But it'sa lot harder th e coming decades, with t hese fu ture chal- when Barbra told us
than people realize Managing social net - lenges in mind, we will t hat t his was coming."
to have this mind -set working, mass collabo - have another genera- That's the legacy that I
and actually devoteas ration, and t he blurring t ion of IT leaders w ho want to leave.
muchas 30 percent of of the line between can't understand why
yourt ime. as I do, to consumerand business being a good service Barbre cooper is VP&
"o
succession planning computing is already provider isn't enough, North America CIO at ,>
and development. We tough and w ill only get We must build aware- Toyota Motor America w
>

have to start early harder. IT leaders will nessand an orientation and a memberof the Cia "oo
u
and think way ahead. need to steer business around these needs. ExecutiveCouncil. eo
""

SEPTEM BER 1. 2 010

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 CALL
FOR
ENTRIES

AWARDS 2011
We're looking for t he next generat ion of standout IT leaders. The
CIO Ones to Watch Award honors t he rising stars in IT-the senior staff
dest ined to beco me t he CIOs of the future-as identified and sponsored
by t he CIOs of today's leading organizations.

App ly CIO magazi ne and the CIG Executive Council's sixth annua l Ones to
Watch award identifies the r ising sta rs in IT. To be honored, these
futu re Ctos must have demonstrated leaders hip, driven innovatio n
and delivered value to th eir business; in short , t hey w ill soon be able
to head up t heir own IT organ ization . The awards are judged by a
panel of veteran CIGs experienced in leadership development and
understand the characteristics t hat pre pare today 's IT ma nagers to
be to morrow's successfu l GIGs.
App ly today at: cio.com/otw
Be Seen Winners will be ho nored during the
CIO Leadership Event May 1- 3 , 2011, Producedby
at the Marriott Sawgrass, Ponte Vedra
Beach Flo feat ured in the May issue of
C/O magazi ne and online at cio .co rn

Nom inat ions accepted through

CIO
au" . , ,, He • • Ol OOY LE '~'. 'H I.

Don't Be Late October 29. For more information

abou t th is and other prestigious
Inpartnership rAtb sister orga nization

program s visit: cio.com/cio -awards lIllIl CIG Executive Council

Leaders Shaping the Future of Business

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 ~ CIO PA RADOX
Education Is a Four-Letter Word
(105needto spend moret ime deliveri ng ITvaluethan explaining it
BY MARTHA HELLER
c an not t ell you how ma ny times I've hea rd CIOs
sa y that the y need to educate the executive comm it-
tee about the value of IT. While I lend 10 nod a nd
ag ree, the idea has always str uck m e as odd.
First, most bu siness executives arc not babbling
44 morons: the y should not 1lN.'<! to be spoon fed information
on an y topic critic nlto their business. Second . th e abilit y to
educate is a ha rd -won skill: CIOs ma y be able ro commu-
nicate-to wr-ite and talk and gel an idea across - but they
arc not ed uca tors. a challenging ro le p racticed by degrrcd
academic professionals.
So I set out to understand why thi s
notion of ed ucation persists a nd how a
Most executives
cross section ofsuccessfu l CIOs interprets are not babbling
the concept. morons who need
"Education is the wrong word," says
EIJ<>n She pard, c ia of Teac h for America. to be spoon fed
"Rather than worry about educating the information on
business, CIOs sho uld spe nd their ti me
lear-ning business s tra tegy and how to
any topic critical
e na ble that s tra tegy thro ugh IT. Th e to their business.
more you d eli ver, th e less you need to
educate."
Raj Kushwah a. c ia of Zimmer Holdi ngs, agrees. "As
Cia , you do not want to bein the position of educating your
peers," he says. "If you are do ing your job, you are noted u-
eating them; yo u are having strategic con versa tions abo ut
tho bus lness. withjust a smallpercentage of that conversa-
tion abou t technology"
Once again, CIOs a re faring a contradiction, W hat a re
the keys to escaping this ed uca tion paradox?
Rel y on your rel ationship managers. "IfI tr y to han-
dle all oftbe communication to my execu tive team myself.
we will fail," says Tom Ba uer, CIO of Alllanz Life. "Th e
communication that ta kes plan ' one and two levels down
is much mo re im portant." Bauer established a team of
b usiness -relnfionship ma nagers in I'Leach responsible for
strategy and delivery to a specific segment of the b usiness.
Witb this team in place, "allthat positive energy bubbles
u p to the executive level, which gives me the credibility to
SEPTEM BER 1. 2010
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have more strategic conversations." says Baue r.
Build a s tee ring committe e o ne level down. She p-
ard also believes in taking a bottom-up approach. "As CIa.
I have always es tablished an en terp rise IT steering com-
mittee mark u p of loaders one level dow n," she says. "If
you wan t to improve IT deliver-y, you need to focus wher e
the operntlonal experience really is." To ensure the gro u p
comes togethe r as an ente rprise, and not just as a collection
of silos looking ou t for their ow n needs. Shepard suggests
developing a se t of rewards for cross- en terprise success.
Set up road map sessions . To focu s
communication on developing and deliv-
er ing initiatives, Tracey Rothen berger,
CIOof Ricoh Ame ricus Corpo ration. uses
road map sessions. The business person
wb o owns the process and the IT staffer
who manages th e relationship look at
key business memes. Then, by com pa r-
ing those met ncs to industr y best prac-
tices, they develop an IT solution and an
Is-month plan to implemen t it.
Bake improvements into plans. If
you wan t to sto p the need for ed uca tion once and for a ll.
says Zimmer Hold ings' Kushwaha, don't rest after articu-
lati ng the business benefi ts of an investment and gaining
app roval. "Make sure there is a closed -loop process with
finance, where those cost savings or top -line benefi ts are
baked into future b udgets," he says. "If you are deploying
a customer-rela tionship managemen t syste m. you and the
business-unit leader should agree on the forecasted impact
on the top line." Once those objectives are part ofeveryone's
plans, "that's when you have last -mile alignment."
The next time you feelthe need to ed ucate peers abou t
what it is you do, perhaps you should see it as a sign: It is
time to mow from in front of the blackboard to the same >
<
side of the table as you r executive peers. •
o
Q
"<
z
MarthaHeller is pres ident of Heller Search Associates, anIT •o
execut ivesearch firm. and a co -founder of t he cia Execut ive •>
•
Council.She can be reached at martha@hellersearch.com. eo
z
"
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tretao SharrnaConsulting .. 14 Ricoh AmericasCorp. 44 Fujitsu Scanners ss 0 489; 866 354·1125 Pleaseallow
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(oIumbiaUniversity , ., ., ." ., .15.48 SAP . ....... , " .. 22,28 (ompany.LP.. . " ., ., ., .. , ., 12 t ion to beqin The single copy price is
ConsolidatedEdison,Inc. 48 SCottrade. 40 18MCorp ... , ., ." ., ., ., .. , ., .. ,5
59 for tile United States and Canada.
CurrentAnatysi" I",., . , ,24 Soc"'ty tor Inlormabon Man"'lement . , .32 iDashlloards. , .. , . , . .45
EconomicResearchServiee 40 5ta rb", ksCorp .13 InteractivE'lnteliigence .. 30 and 515 lnt ernatiooal,Digital annua l
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EMCCorp.. 24 Systemslnr>ovation, 15 JohnsonContrcWS . ". ,. ,. , .. , ., C2
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For'esterResearcll.lnc, 4 TheNemertesResearchGroup. lnc., 15 NetApp . , .. , ., ." ., ., ., .. , ., C4
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GcJogIe,lnc .. . , ., . . .22 TIAA·CREF . , . , . , , .40 Qwest, . . ,IS
GrahamPackagingCo"Inc. ,22 ToyotaMotor America, Inc. 42 RSA5ecurity , ., .. , . ,20 Postmaster: send clla "9'-' of
HertzGlobal Holdings.lnc.. 25 University of Nort h Te<ils . , . , . , .32 SonicWALlInc. , ." ., ., ." ., ., 23 addressto CIO, ~O. Box 489,
18M, . , .... , ,24 Ye,;"oo Wireless ., , .14 Sprint ,25
IIluminata.lnc" 24 SuperMi(roComputerlnc, , ., . .39 Nort hbrook, IL60055 ·9816.
VMwa'e.lnc ' 24
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5E PTE M8ER L 2010 ww w .ci o.c o m

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48

Don't Blow Your Top

Explosions in manholes. though rare. can break windows, send bricks flying, or even knock a person to
the gro und.causing serio us injury. New York City'sCon Edison and researchers from Colu mbia University
are working Oil a system designed to predict which ofthc elcctnc utility's man hole rovers are mostlikel y to
blow so the company can try topreventaccidents.The tool would generate a report ofevents inside- manholes
such as fires, underground burno uts an d flicker-ing lights- a ny of which could indica te that an exp losion is
likely Th e report wo uld also include su mma ries of Prist in spec tions and other relevan t in formati on . Engi-
necrs cou ld use information from the d atabase to develop recommendations and priorities for future inspe c -
lions an d re pair work. Alt ho ugh it's still in the resea rch stage. Chris Ole rt. a COil Edison spokesman. says a
system like this is necessary to maintain the reliability of the 250.000 manholes in New York 's five boroughs.
-Lauren Brousdt

SEPTEM BER 1. 2010

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